What Is Going On In Real Estate? by Carl Zinn
Posted by Steve Frazier
Our Program on June 22nd was a presentation given by our own member, realtor Carl Zinn. He spoke about all of the recent problems in the housing market. He started out by saying that real property was the cause of the international meltdown.
Values in the market are down to 2003 levels, 25 to 30% below the highs of a few years ago. Last year, nationally, 50% of the homes sold were sold for less than the amount of the mortgage on the property. In Minnetonka, the figures were better: one-third of the homes sold were purchased below the mortgage balance. It is still a buyer's market, but financing is difficult to get. Higher down payments are also required. Interest rates are very low, but that will last only as long as the U S Government can continue to find a market for their securities.
At present, consumer confidence indexes are up, and jobless claims are down indicating that things should be getting better. The real estate market has a stock of 15.4 months inventory in homes valued under 600,000; very recently, that inventory was at a 30 month level. Homes valued over 1.5 million show a 48 month supply. To date, homes are not selling fast.
Carl closed reminding us that a home is not an investment; the past history of appreciation in value is not a good thing to rest your retirement plans upon. (Story by Tad shaw and picture and posting by Steve Frazier)
Values in the market are down to 2003 levels, 25 to 30% below the highs of a few years ago. Last year, nationally, 50% of the homes sold were sold for less than the amount of the mortgage on the property. In Minnetonka, the figures were better: one-third of the homes sold were purchased below the mortgage balance. It is still a buyer's market, but financing is difficult to get. Higher down payments are also required. Interest rates are very low, but that will last only as long as the U S Government can continue to find a market for their securities.
At present, consumer confidence indexes are up, and jobless claims are down indicating that things should be getting better. The real estate market has a stock of 15.4 months inventory in homes valued under 600,000; very recently, that inventory was at a 30 month level. Homes valued over 1.5 million show a 48 month supply. To date, homes are not selling fast.
Carl closed reminding us that a home is not an investment; the past history of appreciation in value is not a good thing to rest your retirement plans upon. (Story by Tad shaw and picture and posting by Steve Frazier)